you do not change the rules in midstream. >> i agree.s been a lot of chatter about that. >> is he comes out at 12, say, 25. per the rowboat, it is supposed to go back to the floor. they get a chance to vote again. >> yes. there are some delegates who are representing people that voted for trump. it is not going over so well. >> cruises working map ready well. >> we look at that is stealing. we say you are representing us. your vote says you are supposed to place your vote for donald trump. we expect that. trish: you are going to go to cleveland? you are going to go to the process there? >> it will be a peaceful protest. i think that there are people in mass numbers that plan to be a part of this. just absolutely disgusted with a few people with the our onc deciding who is going to represent us. >> i think that you will see ted cruz people there as well. >> they wind up nominating ted cruz. who will you vote for? are you going to sit this one out? >> no. no. i would not sit this one out. i will vote for the republican nominee. if they go

perhaps, also, from investors who will, in fact, probably argue that you're changing the rules here midstream regarding restructuring, that years ago when they threw their money into puerto rico's bonds, restructuring was impossible. now you want to say, "wait. it is possible." my question is, is that fair? >> well, if we don't allow puerto rico to restructure its debt and prioritize it, then no one is going to get much money, if anything. as you mentioned, joe, puerto rico's on the verge of not being able to pay its next set of payments, and so and what we're going to have is a rush to court and years of litigation that will provide very little money either for bondholders or pensioners or the very future of the 3 1/2 million united states citizens who live in puerto rico. so, i believe that there are other times in our history in which we have permitted restructuring. those who made investments did so understanding that there's always a possibility for a law to change, and so, therefore, as far as i'm concerned, this is the very essence of a survival for puerto rico, as well as for bondhold

it is a very conservative portfolio because most of it is upstream and midstream.ke a next her provision today to be very conservative, but in terms of spillover, we are not seeing much. you see a bit when you get down , a bituston, odessa more, but broadly in terms of serve, weplaces we see no spillover effect on energy. actually, energy is very stimulative. it is not good for the energy companies, but it is good for the consumer. always been surprised that everybody is negative about energy being down. net interest margin did fall slightly, even though we did have the interest rate hike by the fed in december. what is going on there, and you expect that trend of declines to continue? actually, i'll margin was up eight basis points. that is what you would have expected. increase in the , which translated into higher returns, and we were able to manage cost funds. we were really pleased with our increase on margin. we don't think that will be increasing substantially going forward unless rates takeoff really fast, but we think it will hold at a court level, and the

a fertilizere company or midstream -- is that -- open toe mark sale?we will want to retain part of the equity, but we do not have to maintain the majority. we are open to having a majority operator. erik: in refining and where else? guest: the entire structure from up stream to refining to downstream. talks withou in potential buyers? guest: i would like to call them partners. i would call them potential partners. are we talking about oilncial partners or companies. the oil companies are from where? guest: from everywhere. they are global by nature. guest: they are very interested in pemex. oil companies like to go into a country without a domestic partner. pemex is a good partner. erik: you say pemex has a lot of room to cut. where? guest: there's love in efficiency in the company and we are going to go through them. we can improve our negotiating we finds with which specialized equipment. there is room to maneuver. erik: what about jobs? guest: i'm very conscious about one thing. jobs is not an and in itself. erik: but it is a sign of efficiency. gue

it could be some midstream assets. >> that's something to, two partnerships, yes. outright sale? >> we are going to want to repay part of the equity but we do not have to repay the majority. we are open to have a partnering -- erik: a majority operator? >> majority operator. erik: in refining and where else? structure, from upstream, to refining, to downstream. everything. erik: are you in talks with any potential buyers? >> some of them. i like to call them partners rather than buyers. there are both of those. i like to call them potential partners. erik: when we talk about potential partners, or you were talking about financial partners or all come to this -- or oil companies? >> both. they are from everywhere. well companies tend to be all over the world. becauses interesting they are very interested in mexico. but they are very interested in pemex. oil companies do not like to go into a country without a domestic partner. pemex is a good domestic partner. >> what is even spending your time crunching the numbers on? >> we have been looking at a german advertisin

it includes all of this company 's wyoming, upstream and midstream assets in the total amount of sales- asset sales sincerathon, $1.3 billion last year. watching other energy companies including devon. tudor pickering saying private may besentiment difficult to gauge what buyers may be looking to get in here before a bigger rebound in oil and do some asset buying. they named devon as one of the companies that could benefit. as we get into earnings season, earnings companies -- energy companies are going to start a report in earnest starting the week of april 20. just wanted to put a fine point on how much energy is going to drag down. s&p 500 earnings. total forecast is for a decrease of 10.1% but if you take out energy it has that decline. energy companies are accounting for about half of the decline in earnings for the s&p 500. mark: let's stick around with energy in london trading. brent crude climbing to a four month high trading around $43 per barrel. earlier today bloomberg surveillance heard from jeff curry on where optimal prices need to be for global economies. >> let's answer

this after treasury decided to change the rules midstream.t least something of a surprise to the companies themselves. the three year look back that was introduced by the new regulations issued monday evening and made allergen a far smaller company and in doing the deal as a smaller company, pfizer would not be able to make itself a foreign company. and you don't want to do this any longer. not that there weren't other reasons for doing the deal but perhaps even bring that cash back to the u.s. but in a tax freemaner is one of the key reasons pfizer pursued the so-called inversion. it's very unclear whether we'll be able to do any of that kind of thing from here on in. >> we did speak to ceo brent saunders earlier on squawk on the street and i asked him to respond to criticism from the obama administration about companies like his who do so much business in the u. s. are headquatered in many ways in the u.s. but for tax purposes it's a dublin company. >> we are a job creator. we invest in the u.s. we continue to invest our r&b dollars in the

now what are your feelings about this possible plan that was changed in midstream? >> well, i think what it attests to, fred, is belgium police are breaking up the momentum of this group. if they hadn't been knocking these doors down, getting into safe houses, capturing computers, checking information against the information of those computers, they wouldn't have stopped this attack. but they are doing exactly the right thing. all of these groups you have to break the momentum in order to stop them. >> peter, in your view, how much of that momentum has been compromised by these arrests by these recent raids? >> well, mohamed abrini, the man in the hat, is the last surviving person that we know of who played some kind of active role in the paris attacks and then similarly he played a very important role in the brussels attacks. so the immediate cell that carried out both the brussels attacks and paris attacks seems to be mostly behind bars or dead. the problem, however, fredricka, is that the network that is supporting them is still out there and that network, the mo

the magellan midstream partners or embridge energies, those are companies you shouldn't have any fearruptcy. and they're selling off today and presents a good opportunity. >> okay, courtney ratlive, josh mentioned biotech doing well. maybe a couple of days don't make a trend, but do you -- do you feel like that space, which has been so beaten down legitimately has an opportunity to do something in this quarter? >> i know that's one of stephanie's favorites. i might want to just kind of toss it over to you. i think health care in general and as you look at biotechs, those names have been beaten down. it is time for them to come back. we know what is going to happen long-term and the demographics of the country and the world. and i think just across the sector it should do better. >> it has been a laggard year to date, the sector in general. as josh pointed out -- >> is there something going on to turn it around. >> i don't know. i still feel like the political environment is very much of a head wind, but you get some of the best in breed companies that have fallen 20, 30 bucks like sel

can do that and you can comply with the rules given the government changes the rules when you are midstreampt your process, the government has a great deal of difficulty justifying rules. >> let's be honest if there's not a lawsuit that goes to the supreme court to say that guys there may indeed buy allergan. >> i don't know that. it depends on what the president announces today to make yet another announcement of what jack lew has concocted in order to prevent pfizer from lawfully avoiding the heavy taxes in the united states. you're laughing because you agree with me. stuart: i finally wound you up to the point where almost thing in the table. >> pfizer may find a way to comply with these rules and still be owned by an irish corporation. break itself into three smaller corporations that smaller corporations that this one. stuart: it's not legal with their ranks from the treasury. the problem is the extremely high rate of corporate tax by america, has been anybody else. >> we agreed that the government will never admit that. stuart: treasury secretary deputy would like to have a lower corp

they want to change the rules midstream. i don't know when that has happened. for 160 years the rules have been you have to get a majority of the delegates. that's the game we are playing here. for donald trump to come out with that statement and say to imply that ted cruz or anyone is trying to steal the nomination from him is just more political asymmetrical warfare and dishonest because that's not the way it works. >> john, that's your guy. she is driving your guy for his lack of understanding how how far the political machine works. she's right. no one is breaking rules. they are using the rules, much like donald trump said in the past, i used bankruptcy law because it was available to me. he can't have it both ways. do you think that the results last night will finally tell donald trump you need your team, sir? it is not just your personality, because that is topping you at 37% and not going to get you to 1237. >> look, donald trump has been wildly off message the last two weeks. the ad attacking his wife where they essentially implied any beautiful woman

working on that a long time and consider it is a fundamental and fair that the rules are changed on me midstream and my inclusionary is more than double what it is now i understand this displacement in the mission i've run a business the mission for 18 years it is a problem at the same time it is fundamentally unfair the projects a few blocks were genocide under a different standard thank you. i appreciate our hearing me. >> i'd like to remind the members of the public that are standing in front of the door line up on the screen side of the room otherwise theres an overflow room 416 where you can watch and listen to the proceedings okay. >> if you're not here for speak or if you've spoken you can't find a seat you'll have to use the overflow room thank you. >> and commissioners you may know me, i'm spike connie live in the mission since 1984 in response i was in a union for 25 years i'm glad to see our union brothers and sisters are here if you were standing where i was you'd see local 6 sacramento i hope they're getting paid to be here the housing crisis is what precipitated those changes to do

through this period there is going to be a lot of activity, especially in the downstream area and midstreamlogistics and terminals and all that stuff. francine: thank you so much. bob is right. the last major oil m&a transaction i can remember was -- .e was big with nouriel roubini that is at 6:30 a.m. in new york, 11:30 in london. we will talk macroeconomics. ♪ francine: i am francine lacqua in london. tom keene is in new york. we are on yen watch. 108.70 five. let's get to the bloomberg business flash with vonnie quinn. starting theone is process of choosing investment banks for its indian wireless service. they say the wireless carrier may sell about 10% of its indian business through the share sale. biggeste the country's commercial offering. verizon is making a first-round bid for yahoo's business next week. says google ison also considering a bid for yahoo's core business. tom: i want to get to the single best chart for we get to michael mckee on last night's soiree. on the left, paul volcker with the high interest rates. the great moderation of that alan greenspan era, and then on to

economic effect the destruction across the valley chain and construction in the upstream as well as midstreamnd down stream assets that we think it is the right opportunity to buy down at a discount the oil inventories i've been declining if you turn to the next page you see on the global oil supply u.s. has been contributing a lot and growing the supply on the global level of supply there is not as big think compared to this and on the right side show oil supply plus or minus demand this is kind of the trends that effects oil prices going forward depending on the force the speculation on h the supply and demand and looks at most of sources agree that we kind of like moving forward times when supply minus demand ratio becomes negative. >> on the next page shows returns for other upper classes they're not as paramount for san francisco portfolio we have been looking at the at my wife and i agriculture and timber but it is difficult to look at this process as returns came back volatile not as compelling and the number of the qualities managers in those asset classes is for the as high compared

alix: in terms of your exposure, you have midstream, python guys, and service companies.uch of that is junk rated? >> very little. we do see stress, company violations, companies out of formula, but we have a great group of management teams. i'm impressed with what they have done to be sure they can free pay the bank. we have a good group of borrowers, and are expecting our results to be manageable. it is stressful. .lix: absolutely the question every earning six and -- earning season for banks is have they put enough money aside to deal with the default? we look at the big guys, and energy exposure, up to 45%. how do you deal with losses? >> for the banks, the energy profile is small, to present-3%. some numbers are significant, but relative to their capital and earnings is manageable. the regional banks have more stress where it is a bigger part of their business, true in our case. some of the analysis i'm seeing done by third parties are 5%-7%g for emt lasses of 5%-7%.es of with that, in book six regional banks' earnings would be exposed 15%.t 10%-50 alix: for you, how

projects fully approved but magnificent decisions make a good e made only so have us change the rules midstream people have put skin in the game and this is not applying a scalpel to the pipeline this is a hammer on affordable housing in san francisco i know in my district that is the potential to put the hammer on over one hundred avenue, i building we owe it to the people in the town we maximize affordable housing and create a process that is fair and visual so people know the rules they have to abide by people in the city of san francisco when they have a choice landowner or developers have a crisis between residential or commercial our history we want to encourage residential building within our city limits and in some instances it is much easier for developers or landowner to build commercial given the hoops and now 0 move we are impcos and give the housing crisis we have to have residential along the way in march in board adopted the resolution i'm glad to adopt a policy that maximize inclusionary housing requirement it was adopted unanimously with the understanding the trailing legislati

that brund saunders was on with david faber, upset that the government was able to change the rules midstreamthey already had a deal under the existing rules. are you concerned that the government can change rules like that seemingly randomly and would that affect your business down the road? >> well, i'm not familiar with the specifics of this particular situation. of course, i think it's important for there to be predictability. that's how companies like ours take bets over the long term are able to do that. we want to make sure the rules are clear and predictable. >> ken, i'm back, can you hear me? >> yes, i can hear you clearly. >> fantastic. i want to ask you about your own business. merck has been a company that's done a lot of deals in the past. how are you looking at the environment right now for m & a? >> i think it's a good environment. i think there's been a change and i think it gills us an opportunity to possibly acquire good companies with good pipelines at a reasonable price so we can create shareholder value. >> another huge issue in the pharmaceutical industry of course is pr

there is another couple texts that stop right midstream.ght. what they want to do eat. some very mundane stuff it seems strange that he might be discussing that in the midst of a serious storm. all of a sudden it gets cut off. you wonder if maybe somebody boarded the ship, if something happened. you have to wonder about that. >> what do you think of the foul play side of this? >> maybe what they could recover off this phone. is criminals are usually stupid. which is why somebody can commit a crime and then take pictures of themselves and post it on facebook. perhaps they might find some photographic evidence of somebody else getting on the boat and that could lead them down another road. hopefully there will be some evidence like that. but we won't know. at least apple is going to get involved. the chain of custody is okay because the court said the phone is going to go to apple and then going to come back to me. the other thing i thought of though, clayton, what if the parents are fighting because one of the teens caused the death of the o

projects fully approved but magnificent decisions make a good e made only so have us change the rules midstream people have put skin in the game and this is not applying a scalpel to the pipeline this is a hammer on affordable housing in san francisco i know in my district that is the potential to put the hammer on over one hundred avenue, i building we owe it to the people in the town we maximize affordable housing and create a process that is fair and visual so people know the rules they have to abide by people in the city of san francisco when they have a choice landowner or developers have a crisis between residential or commercial our history we want to encourage residential building within our city limits and in some instances it i much easier for developers or landowner to build commercial given the hoops and now 0 move we are impcos and give the housing crisis we have to have residential along the way in march in board adopted the resolution i'm glad to adopt a policy that maximize inclusionary housing requirement it was adopted unanimously with the understanding the trailing legislatio

great values in healthcare, energy, given the -- but in energy we like refiners and mlp's in the midstream pipeline area. >> okay. >> we do -- i think there's going to be some technology opportunities as well. we do discuss the earnings coming out, maybe opportunities to get back in and low valuations. >> microsoft down 7% today. for example, have to leave it there thank you so much though. we appreciate it. kicking things off with 45 minutes to go with the session. the dow is up 26 points today. the s&p adding a point. the transits are up 74 points but the nasdaq is down 37. .75%. red flags being raised about the effectiveness of its genetically modified diseases. our megterrell will have the story next. >>> the game of thrones star is here at the stock exchange. you're watching cnbc first in business, worldwide. trugreen presents the yardley's. hello?! -oh, pizza is here! -oh! yeah, come on in! [claps] woah! lose the sneakers pal. kind of a thing. spring is on. start your trugreen lawn plan today. trugreen. live life outside. >>> welcome back. take a look at the dow transports in a flat

of late they decided to invest more into midstream. mlp acquired mark west and so some of the cash they were just returning to shareholders through repurchases is going to go to the mlp strategy. it is probably a little bit of a head wind in the short-term because investors are not liking mlps as much these days, but longer term, it is a good move for the company. >> here is the most interesting thing to me in your call on marathon. we never talk about retail. a lot of viewers and listeners may not realize that marathon owns the speedway brand retail store at the gas stations. bought a bunch of hess assets. you say this is the most attractive retail franchise in your coverage universe. how come? >> yeah, that's exactly right. speedway has been a midwest focused, you know, basically gasoline station. recently entered the east coast through an acquisition of hess' retail assets. they do a fantastic job with merchandising. that's the real differentiator for retail. anybody can sell gasoline, but the prmerchandise if an art. if you look at

matador has plans to sell some midstream assets, which would, if they get that done at the right pricethings back into balance for them. sm is not going to outspend by a whole lot, about $100 million, their balance sheet can withstand that, but we think it is going to feel a little bit of stret. >> just because they had such a run off their lows? >> more so based on chris' last scenario that he painted, that maybe saudi arabia and iran continue to fight for market share. if saudi arabia gets serious about that, they have 2 million barrels a day of spare capacity, also this neutral zone with kuwait that they could bring back online. that could put pressure on prices and push that recovery that chris is talking about. >> you're not in the $50 camp? >> we think there is a lot of risk to that for sure and right new we're forecasting 37 for this year. >> give us one name, a lot of dire stuff in oil, why are you so negative on oil, the numbers haven't been there, give us one stock that you think does work in this price -- the price of oil doesn't move for the rest of the year. who looks good

all the midstreams are up one, marathon up 70%. you know, people have to focus on these incredible gains. >> of course next time another company wants to do it. >> i mean ensco is saying come bring a deal. you do after market selling bring 100 shares. >> all right. before we go, what's on "mad" tonight? >> i'm doing destruction of the mall. the mall has gone away in four months time. >> i got to check that out. >> you might want to check that out. >> i'm going to check that out. >> happy anniversary to lisa. she doesn't watch the show but i throw it in that gratuitously unless one of her friends watch. they don't watch either. it is incredible vast waste land of everybody that doesn't watch the show, sometimes it breaks my heart. but happy anniversary. >> don't let it. >> don't it get to me? >> yes. >>> we have john harwood and vice president biden coming up. you're down with crestor. alright! now there's a way you can get crestor for $3. adding crestor, along with diet, lowers bad cholesterol. crestor is not for people with liver

which would make it more difficult for the presiding officer at the convention to change things midstreamto put firepower in the hands of the delegates. the chairman of the committee on rules friday they are afraid the presiding officer could unilaterally reopen nominations to allow a candidate to be nominated at his feet as mark set to go which is exactly what so many rank-and-file republicans fear. a lot of people across the country who are fearful that neither ted cruz or donald trump will become the nominee. paul ryan has been suggested taking himself out of the game halfway to the convention and someone who didn't participate in the primaries could become the nominee. >> yes, absolutely. even bakeries have election fever. bring the spot has found a way to cash in ahead of thursday's -- tuesday's primary by churning out some cookie-cutter politicians and they are flying off the shelves at a faster rate they could be carried. cupcake market under sarah silverman. good to see you. thank you for joining us. you just open your cupcake market cafÉ a week and a half ago. >> saturday. we had

economic effect the destruction across the valley chain and construction in the upstream as well as midstreamnd down stream assets that we think it is the right opportunity to buy down at a discount the oil inventories i've been declining if you turn to the next page you see on the global oil supply u.s. has been contributing a lot and growing the supply on the global level of supply there is not as big think compared to this and on the right side show oil supply plus or minus demand this is kind of the trends that effects oil prices going forward depending on the force the speculation on how the supply and demand and looks at most of sources agree that we kind of like moving forward times when supply minus demand ratio becomes negative. >> on the next page shows returns for other upper classes they're not as paramount for san francisco portfolio we have been looking at the at my wife and i agriculture and timber but it is difficult to look at this process as returns came back volatile not as compelling and the number of the qualities managers in those asset classes is for the as high compare

usy understand and they hear and they will not try to switch these rules midstream.kasich is not won a majority of anything. now they're just trying to buy somebody and he's trying to buy his way into the white house ar with promises. . he does not have the money of donald trump and ted cruz but the only way for him to make any headway is to do the old promises thing that when i get in, i will take care of you. it andhow he's doing that's how he will make the amount. hoping to win majorities in oregon and new mexico. this deal was announced late last night. the john kasich and ted cruz campaign were together on this. bob has been waiting in santa rosa, california, go ahead. caller: hello? host: you are on "washington journal." caller: i don't see why something is not come out more about what ted cruz really is. he stands up to the standards of his father. newspaper read a about what was going on in cuba. havana was run by the mafia. the dictator running the country was killing people. now we have this guy coming over here and he is all against these things. , their o

working on that a long time and consider it is a fundamental and fair that the rules are changed on me midstream and my inclusionary is more than double what it is now i understand this displacement in the mission i've run a business the mission for 18 years it is a problem at the same time it is fundamentally unfair the projects a few blocks were genocide under a different standard thank you. i appreciate our hearing me. >> i'd like to remind the members of the public that are standing in front of the door line up on the screen side of the room otherwise theres an overflow room 416 where you can watch and listen to the proceedings okay. >> if you're not here for speak or if you've spoken you can't find a seat you'll have to use the overflow room thank you. >> and commissioners you may know me, i'm spike connie live in the mission since 1984 in response i was in a union for 25 years i'm glad to see our union brothers and sisters are here if you were standing where i was you'd see local 6 sacramento i hope they're getting paid to be here the housing crisis is what precipitated those changes to do